Fiscal Transparency,Political Connection And Government Subsidy

Under the thirty-years economic transformation background,Chinese private enterprises play an important role in national economy,but also has been suffering from some policy "discrimination",most of the government subsidies transferred to state-owned enterprises.Private enterprises and state-owned enterprises should have competed fairly depend on their strength and get government subsidies on the basis of the policy,but the subsidies chaos have disrupted the balance.Private enterprises try to establish a good political relationship to help them get more government subsidies to maintain production and operation,or to obtain a better corporate performance.Private politically connected companies are more likely to receive government subsidies,which shows that the political association of private listed companies to form a resource advantage of the enterprise.However,this resource advantage is likely to undermine the fairness of government subsidies because of official corruption and other reasons,so that government subsidies have not played its proper allocation of resources.This article is based on the private listed companies who obtain government subsidies can bring effects through the analysis of fiscal transparency.This article focuses on the impact of transparency of the private companies who use political association get subsidies.On the basis of the previous studies,the theoretical analysis is carried out,the research hypothesis is put forward,and the empirical test is carried out.This paper selects the listed private companies from 2006 to 2013 in A share market as the research samples,and uses the linear regression analysis method to analyze the collected data to verify the hypothesis proposed in this paper.The conclusions of this paper are as follows:(1)Transparency increased,private enterprises to get more subsidies.(2)High fiscal transparency can inhibit the positive relationship betweenprivate enterprises have political connections and their government grants obtained.This research has certain theoretical and practical significance for the combination of China's macro economy and micro economy.Transparency affect the enterprises to obtain government subsidies for in-depth study,it can enrich the domestic literature,make up for the shortcomings of domestic research and defects.It also can promote the construction of social security transparent,fair and free competition environment,and eliminate corruption,improve the market mechanism,establish new relationship between government and enterprise,guide Chinese enterprises to participate in fair competition,has practical significance to improve the corporate governance of private enterprises.